Correlation Between DigiCom Berhad and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both DigiCom Berhad and PennantPark Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DigiCom Berhad and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiCom Berhad and PennantPark Investment, you can compare the effects of market volatilities on DigiCom Berhad and PennantPark Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DigiCom Berhad with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiCom Berhad and PennantPark Investment.
Diversification Opportunities for DigiCom Berhad and PennantPark Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DigiCom and PennantPark is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding DigiCom Berhad and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and DigiCom Berhad is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DigiCom Berhad are associated (or correlated) with PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of DigiCom Berhad i.e., DigiCom Berhad and PennantPark Investment go up and down completely randomly.
Pair Corralation between DigiCom Berhad and PennantPark Investment
If you would invest 656.00 in PennantPark Investment on September 4, 2024 and sell it today you would earn a total of 15.00 from holding PennantPark Investment or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
DigiCom Berhad vs. PennantPark Investment
Performance |
| Timeline |
| DigiCom Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PennantPark Investment |
DigiCom Berhad and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiCom Berhad and PennantPark Investment
The main advantage of trading using opposite DigiCom Berhad and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiCom Berhad position performs unexpectedly, PennantPark Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PennantPark Investment will offset losses from the drop in PennantPark Investment's long position.| DigiCom Berhad vs. Copa Holdings SA | DigiCom Berhad vs. SkyWest | DigiCom Berhad vs. Sun Country Airlines | DigiCom Berhad vs. Chemours Co |
| PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP Capital |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |